Have a solid team

Usually, a property manager is a person or company whose job is to make sure that things are in order for you and your renter. They are capable of providing you advice, assist you in managing your tenants, rent collection, and help you get the best value for your property.

Property management companies should be able to assist you with property law as well as the rights and responsibilities of both you and your tenants. They can also handle maintenance problems. Except for emergency repairs, the maintenance costs should get your approval first in advance. Roles can also include assistance in finding the right tenants; doing background checks as well as making sure tenants pay rent in a timely manner.

As we move forward with my investment tips next time, I want to discuss knowing your market area and the importance of doing your research prior to purchase.

Foreclosures are always eye catchers to real estate investors. Foreclosure investing lets you buy properties at bargain basement prices. The time and money you invest in foreclosure properties will almost always have greater returns than normal real estate investing.

Given the work it takes to locate a foreclosure means that investors will be less likely to pursue them. If you’re willing to do the research, you’ll be able to find these below-market-price homes and face very little competition.

While there are several profits to be made from a foreclosure purchase, I want to chat about three ways to profit from foreclosure investing. You may decide to keep the property after you purchase it. Buying a foreclosure usually gives you a large instant equity that you can borrow against for future real estate investments. Or, you may choose to rent out the unit and provide yourself with a monthly income.

Another way to profit from foreclosure investing is to flip the foreclosure. Many foreclosures may need only a cosmetic makeover to really enhance their curb appeal. Then you can resell the property at full market value because you already bought low.

Long or short-term?

Most investors think of property investment as a long term and understand that property prices do not rise right away. The longer you can hold a property, the better the return will be. When you build up equity, you may decide to buy a second investment property. Some investors like to flip, or renovate and sell, units. This would be considered short-term investing. The benefit here is that you receive your monies invested back in a few months instead of years. You have to decide which you want to go with, there are always those that choose to do both. You have to do what works best for your business.

It is my hope that these tips have been helpful and that you will be able to get information to grow your business. Remember InvestorComps is always a great resource for your real estate investment business.